Question: Are these statements true or false? Please show the steps, thank you! 1. Suppose that a consumer's demand for good one is x1(p1,p2.M) = Mpfpg

Are these statements true or false? Please show the steps, thank you!

1. Suppose that a consumer's demand for good one is x1(p1,p2.M) = Mpfpg\" where p1 and p: are the prices of goods one and two (respectively), M is income, and cr is an unknown constant. Suppose you are told that if the price of good one increases by 1%. then the consumer decreases consumption of good one by 1.5%. This information is enough to determine a. 2. If two goods are perfect substitutes. then preferences between them are both quasilinear and homothetic

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